What is the difference between a ULIP & SIP?
Here is the difference between the two investment options:
SIP stands for a systematic investment plan that enables an investor to invest a stipulated amount of money in his/her preferred mutual funds at a pre-stipulated interval of time. The investment periodicity can vary from monthly to quarterly or annual basis. In simple words, a systematic investment plan is a planned approach that helps an investor to accrue a large corpus over a period of time.
It is a unique insurance plan, as it comes with double benefits. It is a perfect blend of investment and insurance in a single plan. A ULIP offers the investor to enjoy insurance benefits along with the opportunity to invest in a wide range of investment options of his choice such as bonds and stocks. By this means, the investor enjoys market-linked returns and his/ her insurance needs are also taken care of at the same time.